TMI Blog2018 (5) TMI 1432X X X X Extracts X X X X X X X X Extracts X X X X ..... BER For The Assessee : Shri K.R. Manjani, Advocate For The Revenue : None ORDER PER BHAVNESH SAINI, J.M. This appeal by assessee has been directed against the order of the Ld. CIT(A)-19, New Delhi, Dated 09.02.2015, for the A.Y. 2010-2011, challenging the levy of penalty under section 271B of the I.T. Act, 1961. 2. Briefly, the facts of the case are that assessee deals in sale/purchase of Paints and Sanitary Wares and return of income was filed on 11.06.2010 at a total income of ₹ 4,62,460/-. During assessment proceedings, assessee failed to produce the books of account and audit report under section 44AB and therefore, A.O. initiated the penalty proceedings under section 271B of the I.T. Act. In resp ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t vide his letter dated 11.12.2012 had stated that his books of accounts were misplaced. The appellant remained silent regarding his actual turnover during the assessment proceedings and therefore, the Assessing Officer concluded that the appellant had deliberately violated the provisions of section 44AB by not getting his books of accounts audited in spite of showing substantial turnover in the return of income. 7. The appellant's submission during the appellate proceedings was that his sales during the relevant assessment year was only ₹ 35,39,740/- But the new set of Prof it Loss Account submitted in support of this sale f igures are not genuine as it shows credits only of sales and debits only of purchase freight. Th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... AB of the Income Tax Act, 1961. During the penal ty proceedings, the appellant f iled an audit report before the Assessing Off icer and the auditor who had signed the audit report stated that lie had prepared the same without examining the appellant s books of account. Therefore, the appellant had deliberately not got his books of accounts audited as required under the provisions of section 44AB of the Income Tax Act. Further, during the appellate proceedings the appellant stated that his sales during the relevant assessment year was only ₹ 35,39,740/-, but failed to prove this claim with supporting evidence. As the appellant failed to prove the actual turnover of his business, I have no option but to sustain the penal ty of ₹ 1 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... The assessee vide letter dated 11.12.2012 submitted before A.O. that books of account could not be produced because the same are misplaced. The audit report was also not made available under section 44AB of the I.T. Act before A.O. Learned Counsel for the Assessee submitted that this reply is filed by the C.A. of the assessee. This is no ground to challenge the authority of Counsel for Assessee. Learned Counsel for the Assessee submitted that Shri Sundeep Kumar, C.A. was duly authorised by the assessee to appear before A.O. at assessment stage. Therefore, whatever reply is filed at assessment stage, has been filed on behalf of the assessee which specifically states that books of account could not be produced as the same have misplaced. It ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... is turnover is below the prescribed limit. However, nothing substantial material have been produced before authorities below in support of the above contention. In this case, P L A/c filed by the assessee with return indicates that assessee was liable to get his books of account audited as per provisions of Section 44AB of the I.T. Act. However, the assessee deliberately did not get his books of account audited as required under section 44AB of the I.T. Act. Whatever report was produced is clearly manipulated and fabricated and was not based upon any evidence or material on record. Since the assessee failed to get his accounts audited as per Section 44AB of the I.T. Act, therefore, assessee is liable to penalty under section 271B of the I ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
